Week 11 most important news, that have affected the metal prices
Todays commodity prices
3 months LME USD 1.710 / EUR 1.500
3 months CLME USD 5.610 / EUR 5.010
The impact from the coronavirus is what is driving the market. Yesterday, Monday, the situation got even worse after OPEC and Russia could not agree on the oil output. Russia did not want to cut production, which led to the Saudi Arabia also increasing their oil output. This led to a 30% drop in the oil price, which affected the stock and commodity market with significate price drops.
Yesterday the commodity prices fell below, aluminum USD 1.700 and copper USD 5.500. But expectation of economic help from governments, Fed ECB have led to rising prices again.
While the metal prices still are depending on news regarding the coronavirus and economic stimulus. The oil prices could keep low for a longer period, with the new development between OPEC and Russia.
The coming period must be expected to be very volatile. There will be days where the commodity prices increase a lot, on news of falling infected people and monetary stimulus from FED, ECB etc. And the there will be days with falling commodity prices on news from new outbreaks of the virus, PMI and other financial statements.
Factors that makes the price higher
Announcement of economic stimulus in China, USA and Europe.
Trade agreements between China and USA.
Factors that makes the price lower
Low economic growth from China, US and Europe.
The trade war between China and USA. There is a possibility that there will not be an agreement before the summer 2020.